Digital Sole Trader Accountants in London
That Work as Hard as You Do
Digital accountants for UK sole traders and freelancers.
Self-assessment, allowable expenses, National Insurance, and tax efficiency.
- Making Tax Digital Ready
- Fixed Monthly Fees
- CIMA Regulated
- Serving UK Clients Nationwide
Who This Service Is For
This service is for UK sole traders and freelancers in any sector. This includes tradespeople, consultants, designers, writers, healthcare workers, personal trainers, market traders, and anyone else running a self-employed business under their own name. We also advise sole traders who are considering whether to incorporate as a limited company.
What's Included with Our Digital Sole Trader Accounting Service?
- WHY TDA
Why Choose TDA
FAQ
Frequently Asked Questions
You are not legally required to use an accountant as a sole trader. But the cost of getting your self-assessment wrong or missing allowable expenses typically exceeds the cost of a fixed-fee accounting service. A good accountant pays for themselves. Beyond the financial argument, removing the administrative burden of tax compliance from your plate is genuinely valuable when you are running your own business.
You can claim expenses that are wholly and exclusively for your business. Common allowable expenses include: stock and materials; tools and equipment; vehicle use for business purposes (mileage rate or actual costs); home office costs (HMRC flat rate or proportion of actual costs); phone and internet (business proportion); professional fees, including accountancy; marketing and advertising; training directly related to your business; and professional subscriptions. Personal costs — even if you would not incur them without the business- are not allowable.
Sole traders pay two types of National Insurance. Class 2 NIC is a flat weekly rate (£3.45 per week in 2024/25) paid by those with profits over the Small Profits Threshold of £6,725. Class 4 NIC is 6% on profits between £12,570 and £50,270, and 2% above £50,270 (2024/25 rates). Both are calculated and collected through your self-assessment return. We ensure both are calculated correctly and advise on voluntary contributions if gaps in your National Insurance record need filling.
You must register for VAT if your taxable turnover exceeds £90,000 in any 12-month rolling period. You can also register voluntarily below this threshold. Voluntary registration is worth considering if your clients are mainly VAT-registered businesses (who can reclaim the VAT you charge) and you incur significant VAT on your own costs. We advise on whether voluntary registration is beneficial for your specific circumstances and which VAT scheme.
As a sole trader, you and your business are legally the same entity — your personal assets can be pursued for business debts, and all profits are taxed as your personal income. As a limited company director, your business is a separate legal entity with limited liability. You pay Corporation Tax on company profits (19–25%) and pay yourself via salary and dividends, often at a lower overall tax rate than sole trader income tax. The right choice depends on your profit level, risk profile, and personal circumstances. We advise on the transition and handle the incorporation process if it is the right move.